Cumulus Media Rejects Take-Over Bid

Cumulus Media has responded to an unsolicited, non-binding indication of interest that it received last month.

Jeff Warshaw

Radio industry veteran Jeff Warshaw offered to buy the radio station operator for $1.2B, including debt. According to a Reuters report, Warshaw told Cumulus Media he would be willing to pay $15 to $17/share for the company.

After a careful and thorough review, CMLS board rejected the bid, noting that it "significantly undervalues the company" and is not in the best interests of its shareholders.

In other news, Cumulus Media reported its today and announced a share repurchase program to buyback up to $50M of its outstanding Class A common stock.

Warshaw, who is the chief executive of Connoisseur Media, an operator of 13 radio stations, could not be reached for comment. Warshaw is a lifelong broadcaster. He built his first station while still a student at the Wharton School of Business at the University of Pennsylvania. In 1993 Warshaw founded Connoisseur Communications Partners LP, a 39 station group which he later sold to Cumulus Media in 2000 for $258MM. In 2004 Jeff reformed Connoisseur Media which now operates 13 radio station brands and digital assets in 5 markets in Connecticut, Maryland and New York.